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  3. Study Set
    Foundations of Macroeconomics Study Set 1
  4. Exam
    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    As a Result of an Initial Increase in Investment of $200
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As a Result of an Initial Increase in Investment of $200

Question 27

Question 27

Multiple Choice

As a result of an initial increase in investment of $200 billion, real GDP increased by $800 billion.Given this information, the expenditure multiplier equals


A) 6.
B) 2.
C) 4.
D) 1/4.
E) $800 billion.

Correct Answer:

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